Australia’s residential property market has emerged from the shadow of a drawn-out Federal Election, subdued winter and is in full bloom coming into spring.

The increased market activity, most notable in the capital city markets of Melbourne, Sydney, and at the top end, follows an extended eight-week election campaign, which inhibited business momentum and kept buyer confidence in check during the traditionally slow winter selling period.

For almost a month, the market has experienced record-breaking sales, consecutive weeks of auction clearance rates in excess of 80%, and sales well above expectations in many highly sought-after suburban pockets of the country, according to analysts from CoreLogic RP Data and Australian Property Monitors.

Inner city suburbs are performing best, with Sydney’s auction records from last weekend at their highest level in 15 months, partly thanks to 20% fewer properties on the market and strong competition, according to CoreLogic analysts.

The activity also coincides with news of Australia’s 25-year economic growth and the Reserve Bank’s decision to cut interest rates for a 12th time since August 2011, taking rates to their lowest level on record.

But lending rates are not the only factor driving the market, according to CoreLogic’s Director of Research Tim Lawless, who says there are other influencers underpinning the strength of Melbourne and Sydney, which are outperforming the rest of the country.

"In Sydney and Melbourne both cities have experienced strong jobs growth, low unemployment and high migration rates from overseas and interstate as well as low advertised stock levels," he said.

"The common thread in the housing market is its diversity in capital gains and housing types, which varies significantly across the country," he said.

In the 12 months to Aug. 30, Sydney’s median dwelling price was up 9.4% from the previous year, a slower rate of growth compared to its peak of 18.4% recorded in July 2015.

The buoyant auction results have sparked fears of excessive double-digit price growth from experts such as AMP Capital chief economist Shane Oliver, who warns the market could be heading back to the heady heights recorded in the first half of 2015.

At the top end, price records are under threat up and down the eastern seaboard, with an unprecedented number of trophy homes listed for sale. In Sydney, home mortgage broker Aussie Home Loan founder John Symond has listed his Point Piper mansion in Sydney’s eastern suburbs with A$100 million aspirations, which if realized would become Australia’s most expensive property.

Mr. Symond, who spent A$10.9 million on the harborfront land in 1999, two years and an estimated A$50 million building the multi-level home, this month listed the property with Christie’s International’s Ken Jacobs and LJ Hooker Double Bay’s Bill Malouf.

Sydney’s most expensive home was sold last year, when casino and media magnate James Packer and his ex-wife Erica Baxter sold their Vaucluse estate, La Mer, to a Chinese businessman for A$70 million.

In Melbourne, entrepreneurs Daniel and Danielle Besen have listed their Mornington Peninsula holiday home, Miramar, for $20 million, and will next month list the family home in Toorak, according to domain.com.au, which could become Victoria’s most expensive property should it sell for its A$30 million asking price.

On the Gold Coast, former surfwear Billabong director Scott Perrin just sold his Albatross Avenue, Mermaid Beach home for A$25 million, while former world No. 1 tennis player Pat Rafter is seeking A$18 million for his architecturally designed double beachfront home near Noosa Heads on the Sunshine Coast in Queensland.

DISCLAIMER: The currency conversion is provided for illustration purposes only. It is meant only as an approximation based on the latest information available and should not be relied upon for any other purposes. We are not responsible for any loss that you may incur as a result of relying on these currency conversions. All property prices are as stated by the listing agent.

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